A sign of economic challenge—the New York Stock Exchange warned Houston’s Nine Energy Service, Inc. it is not in compliance with listing standards. Delisting from the exchange is a possibility if the company doesn’t correct things.
Nine Energy, with operations in Oklahoma’s SCOOP and STACK plays, revealed the NYSE notified the firm that its average global market capitalization over a consecutive 30 trading-day period and its last reported stockholders’ equity were both below $50 million.
In accordance with NYSE procedures, Nine Energy has 45 days from its receipt of the notice to submit a business plan to the NYSE demonstrating how it intends to regain compliance with the NYSE’s continued listing standards within 18 months. The company said in its announcement that it intends to develop and submit a business plan within 45 days of receipt of the Notice that demonstrates its ability to regain compliance with the NYSE’s continued listing standards within the required timeframe. The Listings Operations Committee of the NYSE will then review the business plan for final disposition.
In the event the Committee accepts the plan, the company will be subject to quarterly review for compliance with the business plan. In the event the Committee does not accept the business plan,Nine Energy will be subject to delisting procedures and suspension by the NYSE.
The notice has no immediate impact on the listing of the Company’s common stock, which will continue to trade on the NYSE. In addition, the Notice does not affect the Company’s business operations or its SEC reporting requirements and does not conflict with or cause an event of default under any of the Company’s material debt or other agreements.
Nine Energy prepares to release its third quarter earnings report Nov. 1 after it experienced a $14 million net loss in the second quarter.
Company president and Chief Executive Officer, Ann Fox blamed the loss on a declining rig count.
“The US rig count continued to decline during Q2, which impacted both our revenue and earnings. Since the end of 2023, over 40 additional rigs have come out of the market, following a year in which we had 150 rigs exit. As a spot-market business, our revenue and earnings are correlated closely with the US rig count.”
Nine is headquartered in Houston, Texas with operating facilities in the Permian, Eagle Ford, Haynesville, SCOOP/STACK, Niobrara, Barnett, Bakken, Marcellus, Utica and Canada.